Nevada Judge Extends Kalshi Ban as Legal Battles Spread Across US
Judge Jason Woodbury said on April 7 in Carson City that he will issue a full ban on Kalshi in Nevada. The court’s March 20 order had already stopped Kalshi from offering contracts on sports, elections, and entertainment. Woodbury will set the final terms before April 17.
Woodbury claimed Kalshi’s contracts are indistinguishable from licensed sports betting. “No matter how you slice it, that conduct is indistinguishable,” he told the court, according to Reuters.
Mike Dreitzer, Chairman of the Nevada Gaming Control Board, said the board has a legal duty to stop unlicensed prediction markets.
Arizona hit Kalshi with 20 misdemeanor charges for unlicensed wagering. Washington followed with a civil action for gambling and consumer protection violations. Ohio denied Kalshi’s court request against its regulator.
Tennessee allowed Kalshi to run. In Massachusetts, a similar injunction is on hold while an appeal proceeds. There will be a 9th Circuit Court of Appeals on April 16 in Nevada.
Attorney Daniel Wallach said states that went to court first would likely have blocked Kalshi’s sports contracts entirely.
TGJ Take
No federal appeals court has ruled on state authority over prediction markets until now. The April 16 hearing is the first ruling. If Nevada wins, other states can use the same ruling to ban Kalshi. However, a Kalshi win means no state can block prediction markets without federal court support. The outcome will matter more than anything any single state has done so far.
